In this series of blogs, I plan to explain how Sustainability Reporting under GRI framework can be taken, using the existing SAP Modules. First, the KPIs are explained in simplified terms with appropriate examples. Then the discussion is carried on to explain, what are the standard reports already available, what modifications and enhancements are needed in the existing standard reports, to report on the GRI based KPIs.
Perhaps for a better understanding, my previous blogs "SAP Sustainability Solution - Approaches for Sustainability Reporting – Part 3" may kindly be referred. While this blog series does not depend on the older one mentioned above, it gives a better understanding of the positioning and strategic direction in which Sustainability Solution of SAP is heading towards.
Let's start with Society Performance indicator as it has the least number of KPIs, only 8, listed under it.
Aspect: Community
SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting.
This is typically required for highly hazardous industries like:
- 1. Nuclear Power Plants (Chernobyl Accident in Russia),
- 2. Oil and Gas industry (British Petroleum - Gulf of Mexico oil spill),
- 3. Chemical Industries (Union Carbide, Bhopal Gas Disaster).
For such highly hazardous industry, which are prone to serious accident, it really makes sense to have "Programs and Practices" to enter into, operate and exit their operations, without affecting the local community or habitat.
The data will mostly be of qualitative in nature, on programs and practices in place, with some quantitative data on the toxicity, radiation exposure, air or water pollution, amount of oil spill, etc.
This data collection can ideally be collected manually or collected with SuPM, if required.
Aspect: Corruption
SO2 Percentage and total number of business units analyzed for risks related to corruption.
I assume that the business unit referred here refers to Business Area in SAP. The infoobject 0BUSAREA can preferably be enhanced to include two more navigational attributes - ZRSKCOR and ZRSKMSR, for risk for corruption indicator and measure of risk, if required, respectively. Of course, we need to do the corresponding customization and configuration in the ECC 6.0 side to populate those fields.
Once this is done, the data can be loaded into the BW system and the report run on the infoobject 0BUSAREA to report on the SO2 KPI mentioned above.
Business Unit | Risk for Corruption Indicator Yes (x)/ No ( ) | Measure of Risk 0 to 10 |
ABC | x | 9 |
EFG | | 0 |
The period of review can ideally be 1 year to match with the Sustainability Reporting period.
Since the data already lies in the SAP ECC, the preferably approach can ideally be, by enhancements and customization as suggested above. If the number of business unit is very less than we can go for manual data collection or the SuPM module.
SO3 Percentage of employees trained in organization's anti-corruption policies and procedures.
This KPI can be collected from HCM Sub module - "Training and Event management". There is already a SAP delivered report "Attendee's Training History (Report RHTHIST0)". The report already has a selection criterion as reporting month, which can be used for the Sustainability Reporting period.
Perhaps we needs to add one more selection criterion to filter it on the training type or the training catalog, which can ideally be "Anti-corruption"/ Human Rights/ "Prevention of diseases" etc as required by the Sustainability Reporting. I think, with some smart way of combining "The Employee List (Report RHEMPL00)" report in combination with the "Attendee's Training History (Report RHTHIST0)" we can collect the exact KPI required.
The number of employees in the organization keeps on changing and is also huge; hence this can ideally be taken from the SAP system itself.
The blog has become little bit long; let's part now to meet in the Part II.
Disclaimer: The opinions expressed in this blog are purely my personal opinions and has no legal liability on my employer or affiliates or parent organization.
